While recognizing the solid market position of BMO and BMO Re’s profitable operations, A.M. Best notes an overall modest market position of BMO Re relative to its peers, recent earnings volatility and challenges associated with strengthening distribution channels and new product acceptance. Additionally, volatility in economic conditions in Europe could impact BMO Re’s ability to retrocede assumed risks to its European counterparties, and BMO Re is exposed to potential earnings volatility from its assumed property/casualty risk and to a lesser degree, capital. However, capital volatility associated with property/casualty risk is partially mitigated by the ability to retain earnings prospectively.

BMO Re is considered well positioned at its current rating level.

Positive actions on BMO Re’s ratings are unlikely in the near or intermediate term. Factors that may cause negative rating actions include significant adverse changes in the company’s capitalization, operating performance or business model.